Western Digital stock action is pretty good but its fundamentals are off the hook. Earnings growth increased every quarter over the past year and ranged from 146% up to 336% last quarter. Revenue growth for the four quarters ranged between 23% and 49%.
On Tuesday, the IBD Relative Strength (RS) Rating for Western Digital stock climbed from 64 to 71 — putting it a stone's throw away from a key benchmark. The best stocks tend to have an RS Rating above 80 in the early stages of their moves. See if Western Digital can continue to gain strength and clear that threshold.
Western Digital Closing In Fast
Western Digital stock is fast closing on a buy point. It's working on a consolidation with a 74.11 buy point. See if it can clear the breakout price in heavy trading. Tuesday the memory disk maker's stock closed at 72.03 after surging 5.3% for the day.
Can You Really Time The Stock Market?
Among its other key ratings Western Digital has an 81 EPS Rating out of 99 and an 84 Composite Rating. The Composite score combines five separate proprietary ratings into one. The best growth stocks have a Composite Rating of 90 or better.
WDC stock also has a B Accumulation/Distribution Rating on an A+ to E scale, showing that funds are fairly eager buyers of its stock. Additionally, the number of funds holding Western Digital stock rose from 1,631 in March last year to 1,816 in December.
Strong AI-Driven Sales, Earnings Growth
Western Digital reported $1.77 earnings per share last quarter, reversing sharply from a 75 cents per-share loss the same quarter a year earlier. Revenue in its latest quarter jumped 41% to $4.29 billion, driven in part by build out of data centers to run artificial intelligence computers.
Meanwhile, Western Digital holds the No. 2 rank among its peers in the Computer Software-Storage industry group. Pure Storage is the No. 1-ranked stock in the group.
IBD's proprietary Relative Strength Rating tracks market leadership with a 1 (worst) to 99 (best) score. The rating shows how a stock's price performance over the last 52 weeks stacks up against all the other stocks in our database.
Please follow James DeTar on Twitter @JimDeTar
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